The Sunday Times November 28, 2021 15
MONEY
Dogs have owners while cats have
servants, or so I had always believed,
but the truth is that many of us have
a soft spot for both. The commercial
consequences of that happy fact gave
this investor a rare reason to smile in
what was rather a bleak week elsewhere.
The self-descriptive specialist retailer
Pets At Home (PETS) reported a 77 per
cent increase in pre-tax profits during
the half-year to October as working from
home prompted many people to spend
more on our furry friends.
Peter Pritchard, the PETS chief
executive, did not beat about the bush.
“This year without question will be the
most successful Christmas we will ever
have. Sales are beyond expectations.”
PETS is one of the top 10 holdings in
JPMorgan Mid Cap ( JMF), the UK All
Companies sector investment trust in
which I invested last March at £11.65
a share. The fund has major stakes in
other businesses that are benefiting
from post-Covid changes in the way
we live, including Future (FUTR), the
publisher of magazines for a wide range
of hobbies; Games Workshop (GAW),
the cult toy-maker; and Dunelm (DNLM),
the soft-furnishings retailer.
Despite the UK market looking cheap
on many global comparisons, political
and trade risks continue to depress
valuations. The JMF share price closed at
£12.80 on Friday and remains more than
10 per cent below its net asset value.
Confidence is fragile, but these
companies might offer bargains to
long-term investors.crack down on these pastimes and the
shares have got even cheaper. Fortu-
nately, NTDOY yields dividend income of
4.7 per cent which, thanks to American
Depositary Receipts (ADRs), is coming
through my self-invested personal pen-
sion (SIPP) quite cleanly, so at least share-
holders are being paid to be patient.
Helium One Global (HE1) is another
hit-or-miss punt that has missed. This is
no surprise with a gas exploration com-
pany where I have repeatedly warned of
the risks. I originally introduced this idea
with the warning that it is “bonkers; com-
pletely bonkers”.
Presently 35 per cent down, the shares
are either worth nothing at all or, if they
find sufficient quantities of the gas they
seek in Tanzania, name any number you
like. If all that sounds somewhat cavalier,
I would just point out that I have had bet-
ter luck with similar longshots elsewhere.
Plenty of pessimists predicted doom
for Fevertree Drinks (FEVR) and ITM
Power (ITM) before both subsequently
soared, involving much bigger sums of
money. So I continue to believe there is
scope for a speculative minority as part of
a diversified portfolio of 50 shares.
Less happily, BlackRock Latin Ameri-
can (BRLA) continues to live down to the
City cynics’ jibe that Brazil is the country
of tomorrow — and always will be. This
long-standing shareholder remains 26
per cent down according to the invest-
ment platform’s calculator but nearer
breaking even after dividend income of
5.6 per cent is taken into account.
Meanwhile, Orsted (ORHE) demon-
strates the risks of following fashion. My
investment in this offshore wind farm
operator last October seems to have
caught the top of the renewable energy
market and is currently 16 per cent down.
To return to the question where we
began, I remain unsure about whether
VRS can score with Brooklyn Beckham. It
reminds me of a wise old sub-editor who
warned me that any newspaper article or
headline that asks a question can be
answered with a single word. “No.”
I learned later that this is known as
“Betteridge’s Law”. Here and now, what
this investor would like to know is this: is
Betteridge’s Law always true?Pampered
pets give
fund a push
£12.80
JPMorgan Mid Cap investment trust’s
share price. Cowie paid £11.65C
an a deal with the fashion
brand behind David Beck-
ham’s son, Brooklyn, be
enough to rescue the worst of
my investments from relega-
tion? I only ask because Mr
Market seemed to think so,
marking up the price of
Gloucestershire-based Versa-
rien (stock market ticker:
VRS), an engineering materials company,
by more than 10 per cent on news of its
collaboration with the streetwear-maker
Superdry (SDRY).
It would be great to see two small com-
panies from Cheltenham join the long list
of British world-leaders. Reports that
Brooklyn is being paid £1 milion to model
the gear added excitement to the joint
venture, despite share prices falling on
Friday. Sad to say, enthusiasm proved
more short-lived than Manchester
United’s most recent manager.
Stock market investment is a game of
two halves — we must be prepared to lose
as well as win. So I continue to report the
rough and the smooth, while taking it one
share at a time.
After more than a decade of rising
markets, it is very important to remem-
ber the risks as well as the rewards of
equities. That includes Cowie’s clangers
— shares where the price fell by more
than 10 per cent after I invested — and
none has proved more painful in percent-
age terms than VRS.
Hope springs eternal but I also remain
sceptical after paying 177p for shares in
October 2018 that closed on Friday —
please don’t laugh — at 28p.
As my byline photo suggests, I know
nothing about fashion and still less about
molecular physics. The main reason I
retain the rump of this shareholding (I
sold a chunk at 91p in December 2019) is
to deter me from making too many simi-
lar, hit-or-miss “moonshot” investments.
That is an occupational hazard for
professional optimists, which might be
one way to describe long-term sharehold-
ers, and it helps that I adhered to the
simplest and single most important rule
for investors: diversify to diminish risk.
I only ever put 1 per cent of my money
into VRS.
The same is true of the next worst
Cowie’s Clanger. Schroder UK Public Pri-
vate Trust (SUPP). This investment trust
is another busted bet on British innova-
tion which might serve as a warning not
to get too patriotic with our pensions.The day the Beckhams came to the
rescue of one of my worst stock tips
Ian Cowie Personal Account
crack down on these pastimes a
shares have got even cheaper.
nately, NTDOY yields dividend inc
4.7per cent which, thanks to Am
Depositary Receipts (ADRs), is c
through my self-invested persona
sion (SIPP) quite cleanly, so at least
holders are being paid to be patien
Helium One Global (HE1) is a
hit-or-miss punt that has missed.
no surprise with a gas exploratio
pany where I have repeatedly war
the risks. I originally introduced th
with the warning that it is “bonker
pletely bonkers”.
Presently 35 per cent down, the
are either worth nothing at all or,
find sufficient quantities of the ga
seek in Tanzania, name any numb
like. If all that sounds somewhat ca
I would just point out that I have h
ter luck with similar longshots else
Plenty of pessimists predicted
for Fevertree Drinks (FEVR) an
Power (ITM) before both subseq
soared, involving much bigger su
money. So I continue to believe t
scope for a speculative minority as
a diversified portfolio of 50 shares
Less happily, BlackRock Latin
can (BRLA) continues to live down
City cynics’ jibe that Brazil is the c
of tomorrow — and always will b
long-standing shareholder rema
per cent down according to the
ment platform’s calculator but
breaking even after dividend inco
5 .6 per cent is taken into account.
Meanwhile, Orsted (ORHE) d
strates the risks of following fashi
investment in this offshore wind
operator last October seems to
caught the top of the renewable
market and is currently 16 per cent
To return to the question whe
began, I remain unsure about w
VRS can score with Brooklyn Beck
reminds me of a wise old sub-edito
warned me that any newspaper ar
headline that asks a question c
answered with a single word. “No.
I learned later that this is kno
“Betteridge’s Law”. Here and now
this investor would like to know is
Betteridge’s Law always true?an a deal with the fashion
brand behind David Beck-
ham’s son, Brooklyn, be
enough to rescue the worst of
my investments from relega-
tion? I only ask because Mr
Market seemed to think so,
marking up the price of
Gloucestershire-based Versa-
rien (stock market ticker:
ngineering materials company,
han 10 per cent on news of its
on with the streetwear-maker
SDRY).
be great to see two small com-
m Cheltenham join the long list
world-leaders. Reports that
s being paid £1 milion to model
dded excitement to the joint
espite share prices falling on
d to say, enthusiasm proved
ort-lived than Manchester
ost recent manager.
arket investment is a gameof
— we must be prepared to lose
win. So I continue to report the
the smooth, while taking it one
ime.
ore than a decade of rising
t is very important to remem-
sks as well as the rewardsof
hat includes Cowie’s clangers
where the price fell by more
er cent after I invested — and
roved more painful in percent-
than VRS.
rings eternal but I also remain
fter paying 177p for shares in
0 18 that closed on Friday —
’t laugh — at 28p.
byline photo suggests, I know
out fashion and still less about
physics. The main reason I
rump of this shareholding (I
nk at 91p in December 2019) is
e from making too many simi-
miss “moonshot” investments.
an occupational hazard for
al optimists, which might be
describe long-term sharehold-
t helps that I adhered to the
nd single most important rule
ors: diversify to diminish risk.
r put 1 per cent of my moneyme is true of the next worst
anger. Schroder UK Public Pri-
(SUPP). This investment trust
busted bet on British innova-
might serve as a warning not
patriotic with our pensions.Launched by the so-called star fund man-
ager Neil Woodford, SUPP has vaporised
67 per cent of my money. Clutching at
straws, there is some comfort to be had
from the fact that four out of six SUPP
directors have invested more than their
annual fees here. Even so, SUPP serves as
a warning never to believe the hype about
star fund managers.
But there is no getting away from this
DIY investor being to blame for my night-
mare at game-maker Nintendo (NTDOY)
where I am 27 per cent down at present.
I thought the world’s biggest player in
video games looked cheap and might do
well with more people spending more
time at home because of the pandemic.
Unfortunately, I did not expect China toST DIGITAL
Read a full list of Ian Cowie’s
‘forever’ fund
thesundaytimes.co.uk/cowieholdings